TON (The Open Network) Blockchain Suffers Major Disruption, Raising Concerns Among Users and Investors

The Open Network (TON), a blockchain project initially developed by brothers Pavel and Nikolai Durov, experienced a significant disruption late Tuesday, as users began reporting that the protocol had stopped processing transactions.

The Open Network (TON), a blockchain project initially unveiled by brothers Pavel and Nikolai Durov through a whitepaper published on the Telegram messaging platform in 2018, experienced a major disruption late Tuesday, as users reported that the protocol had stopped processing transactions.

According to Tonscan, a blockchain explorer monitoring TON, the network failed to produce any new blocks for over four hours. This disruption prompted major cryptocurrency exchanges, including Binance and Bybit, to suspend all deposits and withdrawals related to the network, further escalating concerns among users and investors.

Prior to the outage, Tonscan reported that the launch of the $DOGS meme coin had led to a significant increase in network traffic. The heightened activity was said to be causing strain on several central services within the network, resulting in brief interruptions. However, the total cessation of transactions indicated a more severe underlying issue, leading to widespread speculation about the network’s stability.

TON’s history is closely linked to Telegram, as the blockchain was unveiled by Pavel and Nikolai Durov in 2018 through a whitepaper published on the messaging platform. The project quickly gained momentum, with its initial coin offering (ICO) of the native token, Gram, becoming the second-largest in history. However, the U.S. Securities and Exchange Commission (SEC) intervened, halting the project by classifying the Gram token offering as unregistered securities.

Following this setback, Telegram officially withdrew from the project in 2020. Nonetheless, a group of community developers continued to work on the network, which eventually culminated in the launch of the current iteration under the leadership of Anatoliy Makosov and Kirill Emelianenko.

The disruption of TON’s network comes on the heels of serious legal challenges for Pavel Durov. The Telegram founder was arrested in Paris on Saturday, facing multiple charges, including facilitating illegal transactions, refusing to cooperate with law enforcement, and allowing illicit activities such as child pornography, drug distribution, organized fraud, money laundering, and illegal cryptographic activities to occur unchecked on Telegram.

Despite Telegram’s efforts to distance itself from TON following the SEC’s intervention, the messaging platform has recently begun to re-engage with the network. This renewed interest includes initiatives like compensating channel owners with a share of ad revenue through Toncoin (TON), the network’s native cryptocurrency. In August, Telegram introduced a feature allowing content creators to earn cryptocurrency through the in-app currency “Stars,” which can be converted into TON or used for advertising payments within the platform.

While Durov’s arrest and the network outage have impacted TON’s trajectory, Telegram’s user base has continued to grow, surpassing 950 million in July, partly driven by the rising popularity of crypto-based games accessible through integrated “mini-apps” within the platform. Among these, Hamster Kombat has emerged as the most popular, reportedly attracting over 300 million players in recent months. The game’s success is likely to be further bolstered by its upcoming token launch and airdrop, which could drive user engagement and adoption.

The recent disruption of TON’s network has brought the future of the blockchain project and its relationship with Telegram under close scrutiny. As the network’s developers work to resolve the current issues, the broader Web3 community is left to speculate on the long-term viability of TON and its ability to maintain user trust in the face of technical challenges and legal complexities.

Telegram’s re-engagement with TON, particularly through its integration of Toncoin into the platform’s monetization strategies, suggests that the messaging giant may still see potential in the blockchain project. However, with Durov’s legal troubles casting a shadow over both Telegram and TON, the path forward remains uncertain. The coming weeks will likely be critical in determining whether TON can overcome its current challenges and continue to evolve as a key player in the decentralized internet landscape.

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